RBI launches G-sec app for Retail Direct Scheme, also launched PRAVAAH portal
New Delhi: 29 May 2024
Government securities, or G-secs, are investment instruments issued by governments to raise funds. They offer a low-risk investment option with fixed interest rates. Treasury bills are short-term securities with maturities of less than 12 months, while bonds are issued for longer durations.
In order to to simplify the process of investing in government securities (G-secs) for retail investors, the Reserve Bank of India (RBI) has introduced a mobile application named the ‘G-sec app‘ under its Retail Direct Scheme.
According to RBI Governor Shaktikanta Das, the RBI Retail Direct Scheme, which was launched in November 2021, is set to become more accessible with the introduction of this mobile app. “The launch of a mobile app for accessing the Retail Direct portal will provide greater convenience to retail investors and deepen the G-sec market,” said Das.
The RBI further elaborated, stating that the Retail Direct Scheme allows individual investors to maintain gilt accounts with the RBI and invest directly in government securities.
This scheme enables investors to purchase securities in primary auctions and to buy or sell securities through the NDS-OM (Negotiated Dealing System—Order Matching) platform. To enhance ease of access, the new mobile application will allow investors to buy and sell instruments conveniently on the go. The app is expected to be available for use shortly.
More about RBI Retail Direct Scheme
- The Retail Direct Scheme, introduced in 2021, allows individual investors to directly invest in government securities like Treasury Bills and Government Bonds issued by the central and state governments. This scheme eliminates the need for intermediaries, making the investment process more transparent and accessible.
- A significant milestone in the development of the Government securities (G-sec) market, the Reserve Bank of India-Retail Direct (RBI-RD) Scheme will bring G-secs within easy reach of the common man by simplifying the process of investment. Under the Scheme, retail individual investors will be able to open a Retail Direct Gilt (RDG) Account with the Reserve Bank of India, using an online portal (https://rbiretaildirect.org.in). Investments can be made using the following routes:
- The G-sec app which acts as a comprehensive solution for retail investors interested in government bonds and treasury bills. It offers a user-friendly interface for buying and selling securities, simplifying the complexities associated with traditional investment methods.
G-sec app increases the accessibility of G-sec investments for retail investors. By streamlining the investment process, it enables more individuals to participate in the G-sec market. The app’s launch is anticipated to attract more investors, particularly those seeking low-risk investment options.
Payments for transactions can be done conveniently using saving bank account through internet-banking or Unified Payments Interface (UPI). Investors can obtain help and other support facilities on the portal itself and also through a toll-free telephone number 1800–267-7955 (10am to 7pm) and email. Investor services include provisions for transaction and balance statements, nomination facility, pledge or lien of securities and gift transactions. No fees will be charged for facilities provided under the scheme.
The Scheme aims to provide a safe, simple, direct and secured platform to investors.
RBI introduces PRAVAAH portal
The RBI also launched PRAVAAH (Platform for Regulatory Application, Validation and Authorisation), a secure and centralised web-based portal for any individual or entity to seek authorisation, licence, or regulatory approval on any reference made by it to the Reserve Bank.
At present, 60 application forms covering different regulatory and supervisory departments of the RBI have been made available on the portal. This also includes a general-purpose form for applicants to submit their requests, which are not included in any other application form. More application forms will be made available as required.
FinTech Repository
The central bank has also launched the FinTech Repository to capture essential information about fintech entities, their activities, technology uses, etc.
Simultaneously, a related repository called EmTech Repository, which is being launched for only RBI-regulated entities (banks and non-banking financial companies (NBFCs)) on their adoption of emerging technologies (like artificial intelligence (AI), machine learning (ML), cloud computing, distributed ledger technology (DLT), quantum computing, etc.), is also being launched.
“The FinTech and EmTech Repositories are secure web-based applications and are managed by the Reserve Bank Innovation Hub (RBIH), a wholly-owned subsidiary of the RBI. The repository will enable the availability of aggregate sectoral-level data, trends, analytics, etc., that will be useful for both policymakers and participating industry members. The Reserve Bank of India encourages the fintechs and regulated entities to actively contribute to the repositories,” said the RBI